M3 Mining (ASX:M3M) has identified a number of advanced exploration and pre-development stage energy projects in the Middle East and North Africa (MENA) region.
Best known for its mining exploration activities in Western Australia, M3 has advanced discussions with administration with guidance from reputable consultants to assist with due diligence, negotiations and anticipated work programmes for the potential project acquisitions.
Executive director Simony Eley said M3 has also engaged a range of experienced advisory groups to assist with due diligence and to provide engineering and infrastructure management, geology and geophysics advice.“M3 Mining’s efforts to secure an advanced energy project in the Middle East and North Africa continue and chances of being successful are improving, with planned meetings with regulatory bodies and external consultants. Concerns around energy security is becoming a consistent issue due to the increasing recognition of the need to be able to source reliable and affordable energy in developing countries as well as diversifying supply due to conflict," he said.
"The company will soon meet with the authorities responsible for overseeing energy supply as well as well-known consultants in the engineering and geology and geophysics sectors, to advance negotiations to secure an energy asset.”
"As we announced to shareholders in August 2023, we have been advancing acquisition opportunities in metals and energy in Australia and overseas and we have recently commenced engaging with the regulatory bodies in relation to securing an energy asset."
Mr Eley said one of the key reasons such an asset has been targeted is due to energy security in the MENA region.
"The need for alternate sources of energy for the area are unfortunately readily apparent given the conflict in Ukraine and the Gaza war.
"Equally, poorer and developing areas in Africa are looking to secure reliable and affordable energy as the outlook and growth of these areas improve.
"M3 Mining has assessed numerous assets, at various stages, in the resources sector. Given the lack of quality advanced exploration/pre-development assets as well as high expectations in relation to value, the company elected to broaden its options by considering various other opportunities in the resources sector both in Australia and overseas."
The assets being targeted and advanced have the following qualities:
- Resources (at varying levels of confidence) and potentially reserves
- Ready access to infrastructure for transmission and/or transport of energy captured or produced
- Assets with reserves may present early production opportunities
- Synergistic projects that may contribute to creating value also being considered
The company has engaged three globally notable groups to assist with due diligence and early work plans, assuming negotiations to secure an asset advance, via master services agreements (MSA). The groups combined provide engineering and infrastructure management, geology and geophysics advice and support based on latest technology and logistics and instrumentation and are highly regarded with extensive histories in the energy space.
The next step to securing an energy asset is to meet with the regulatory and administrative bodies to outline the work plan and programme prepared by the company with its consultants and present M3 Mining’s intentions to develop the relevant asset.
